There's always something you can't think of that will make you lose money. There's a song that says, "There are 50 ways to leave a loved one," and there are at least 50 ways to lose money.
The purpose of trading rules is to trade with as much objectivity and consistency as human nature allows. Without trading rules, your wishes may dominate trading decisions, and in nine cases out of ten, your wishes will not be fulfilled in market trading.
Trading standards
Rule 1: Trade according to the plan and stick to it.
Rule 2: Trade against the trend, "the trend is your friend".
Rule 3: To the extent permitted, use stop loss orders.
Rule 4: When in doubt, show up!
Rule 5: Be patient and do not overextend your trading.
Rule 6: recognize losses quickly, so that profitable positions continue to develop.
Rule 7: Never allow a winning position to turn into a loss (or, if possible, hold a certain winning position).
Rule 8: Buy weakness, sell strength. Sell should be treated equally with the willingness to buy.
Rule 9: In the early stages of a long market, play the role of the investor. In the late long market and short market, should play the role of speculators.
Rule 10: Do not amortize losses - do not add to losses.
Rule 11: Never buy only because the price is low, never sell only because the price is high.
Rule 12: Trade only in liquid markets.
Rule 13: Do not take a position when prices move rapidly.
Maxim 14: Do not trade on specific information. In other words, "trade with the flow, not the advice of friends." Also, no matter how strongly you feel about a stock or market, don't offer free news or opinion.
Rule 15: Always analyze your mistakes.
Rule 16: Always beware of "false m&a news".
Rule 17: A trade should not be entered into if its success depends on the correct execution of the order.
Rule 18: You must keep your own transaction records.
Rule 19: Know and obey the rules!
Content from the Theory of Professional Speculation
